Idaho lawmakers approve $274 million in budget cuts tied to federal tax changes, affecting public colleges and Medicaid, with cuts set to take effect in 2027.

The Idaho Joint Finance-Appropriations Committee approved $131 million in current-year budget cuts and $143 million in permanent reductions for most state agencies, resulting in a total 4% to 5% cut, excluding K-12 education, Medicaid, state police, and corrections. The cuts, driven by state conformity with federal tax changes, include $18.6 million for public colleges and $17.5 million for Medicaid, with officials warning of layoffs and service disruptions. The Senate passed a tax conformity bill costing $155 million in revenue, aligning Idaho’s code with federal tax cuts, including benefits for tips, overtime, and seniors, which expire in 2028. The legislation now heads to Governor Brad Little.